- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 22. Understanding Balance Sheets
- Subject 5. Uses and Analysis of the Balance Sheet
CFA Practice Question
To calculate the cash ratio, the total of cash and marketable securities is divided by ______.
A. current liabilities
B. total liabilities
C. total assets
Explanation: Current liabilities are used in the denominator for the current, quick, and cash ratios.
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